Time Warner has agreed to separate from its cable division, the company said Wednesday.

As part of the separation, Time Warner Cable has declared a one-time dividend of about $10.9 billion to stockholders, $9.25 billion of which will go to Time Warner.

"Separating the two companies...will help their management teams focus on realizing the full potential of the respective businesses and will provide investors with greater choice in how they own this portfolio of assets," Time Warner CEO Jeff Bewkes said in a release. "We're bullish on Time Warner Cable's prospects, but its strategic goals and capital needs are increasingly different from those of our other businesses."